The SEC's Corporate Proxy Rules Need a Rewrite

More than token ownership should be required to get
a proposal on the ballot.

By

Edward S. Knight

March 26, 2014 6:34 p.m. ET

Communicating with shareholders is a crucial part of the job for 21st century business leaders, and most of them understand the value of doing it. The proxy-proposal system is an important, regulated part of this process for publicly traded companies. It gives investors the option of bringing an issue to a vote by all shareholders and ensures that the owners have a voice in how their company is managed. But the current process is outdated, burdensome and costly.